Blockchain Startup New Street Technologies Raises $4 Mn Funding The company plans to utilize funds for global expansion and product development
By Prabhjeet Bhatla •
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Bengaluru-based blockchain technology enabler New Street Technologies (New Street) has bagged a $4 million funding in a follow-on round. The round saw participation from a group of private investors led by Vittal Kadapakkam in the US, prominent Indian bankers, and existing investors including Unitus Ventures and Mohit Davar, Chairman of International Association of Money Transfer Network.
With operations in India, UAE, and parts of Asia, the platform now plans to enter the Americas, Europe, and Africa.
"Blockchain is to "processing' what the internet is to information. New Street has leveraged blockchain's unique ability to democratize transaction processing and has already demonstrated its transformational impact in the BFSI sector. Our investors understand the exponential opportunity that our model has globally, and hence this investment in us. The capital raised provides for accelerated product development and access to the larger global markets," said Sajeev Viswanathan, founder, and chief executive officer, New Street.
"New Street's flagship blockchain-based middleware - MiFiX, is amongst the world's first commercially successful blockchain ecosystems for the BFSI sector. A single MiFiX node in a bank can revolutionize processes and foster innovation across products including, trade finance, digital lending, cash management, remittances etc. In microfinance processing for example, MiFiX has improved operating efficiency by over 500 per cent, across the value chain - from bank to business correspondent to end borrower, without any significant capital expenditure to our clients. In another use case, New Street deployed Finance Against Remittances (FAR), an innovation that helped our bank client gain a significant share of the country's foreign inward remittances by leveraging their own balance sheet - a product that was not possible without MiFiX. Some of the most influential world bodies in the cross-border migrant remittances sector recognize FAR as innovation and are working with New Street to deploy it in remittance corridors across the globe," Viswanathan added while emphasizing on the unique product that they have developed and its use cases.
"There is no doubt that blockchain is the way forward for the BFSI sector world-over. New Street has made it easy for financial institutions, new and historic alike, to weave the technology seamlessly into their business models and benefit from its versatility, instantaneously. My participation in this round is testimony to the massive global opportunity that exists for the company and my faith in the team to make it happen," shared Mohit Davar, co-founder, and non-executive director, New Street.
Many Indian businesses are at the forefront of innovation and understand the value of blockchain technology. New Street's business model helps their clients adopt BCT and other new-age technologies to improve their processes and prospects exponentially without disruption and at minimal capital investment.
"The opportunity roadmap is vast. We believe that blockchain technology in banking is like the internet boom in the 90s. This technology explosion will transform the functioning of banks, especially with initiatives undertaken by the RBI, now several private and public banks are adopting the benefits of blockchain technology. We have also seen how blockchain technology has contributed to the ease of doing business by simplifying lending to micro, small and medium enterprises (MSMEs). We are happy to be the early backers in this massive transition that New Street leads," noted Srikrishna Ramamoorthy, partner, Unitus Ventures.
New Street is making rapid inroads with banks, NBFCs, insurance companies, P2P lenders in India, Money Transfer Operators (MTOs) and banks overseas. The startup is also in conversations with multiple central banks to develop BCT ecosystems for the BFSI sector in their countries, the platform shared.
"New Street's interpretation of blockchain and their go-to-market strategy are unique. With the efficiencies they have created and the innovation opportunities they have demonstrated with MiFiX, their financial services middle-ware ecosystem has the potential to positively impact the BFSI sector globally. We are very excited to back this talented New Street team and be part of this transformative journey," commented Vittal Kadapakkam.
